Japan’s finance minister further sharpened his rhetoric on the yen’s steep gains after the Nikkei newspaper reported Japan may consider selling the yen in unilateral intervention if speculators drive up the currency.
Finance Minister Yoshihiko Noda told reporters he would respond appropriately as needed, an expression he has not used so far in his campaign to talk the currency down.
The yen rose to a 15-year high against the dollar and a nine-year peak against the euro on Tuesday amid fears the global economy is slowing, testing Japanese authorities’ resolve to stem the currency’s climb.
The sharp yen rise and declines in the Nikkei stock average have increased the likelihood that the Bank of Japan will further ease its monetary policy before its scheduled rate review next month, sources told Reuters.
"The dollar went to 83 yen, so the chance of intervention has increased, but it would take more than intervention," said Kiichi Murashima, economist at Citigroup Global Markets in Tokyo.
Read the rest of the story: Japan warns on intervention after yen rise.